HTC shows 83% drop in profit as smartphone market demands diversity
Profits are dropping but an expansion of the HTC One range could bolster revenue
Taiwanese smartphone and tablet manufacturer HTC have announced their revenue forecast for the second quarter of 2013, showing an 83 per cent drop in profits from last year.
Profits were NT$1.25bn (roughly £28m) from NT$70.7bn revenue. This is a substantial drop from the same quarter last year, where the revenue was NT$91.04bn giving profits of NT$7.4bn (roughly £164m).
HTC is struggling to stay afloat in a highly competitive smartphone market, with Apple and Samsung’s giant budget for advertising doing serious damage to the profile of HTC devices. A series of high-profile change amongst the executive level have also hurt the company.
Despite these falling profits, the company is still in the black, and certain industry commentators have been bullish about the latest reports. The Financial Times reported the news as “New flagship phone lifts struggling HTC”, whilst Engadget noted that at least the profits were an improvement upon the first quarter of 2013.
And it’s undeniable that where HTC has been successful is in the actual business of making phones. Their flagship device, the HTC One, received rapturous reviews across the media. PC Advisor called it “one of the best smartphones around” whilst Gizmodo declared it “one of the most exciting pieces of hardware we’ve seen in a long time” and “the best Android phone you’ll be able to buy for the foreseeable future.”
Unfortunately the critical acclaim did not translate directly into sales for HTC, especially when faced with Samsung’s wide-ranging portfolio of devices. The latest rumours are that a HTC One Mini and a HTC One Max are on the way to flesh out the company’s range –a pair of devices, one smaller than the One, and the other a tad larger. This would hopefully allow the company to compete with Samsung’s upcoming Galaxy S4 Mini and Apple’s cheaper iPhone, as well as phablet devices such as the Galaxy Note range.
HTC’s problems are not unique however, and the need to diversify is being felt by many companies on the market. As US and European markets reach saturation point regions such as China are becoming the main engines fuelling growth, demanding lower-cost smartphones rather than expensive, high-end models.
- 1 Student jailed for hacking University of Birmingham computers to improve his grades
- 2 Smartphones are making children borderline autistic, says psychiatrist
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 The most powerful passports in the world
Student jailed for hacking University of Birmingham computers to improve his grades
Smartphones are making children borderline autistic, says psychiatrist
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Royal baby: Live updates as the wait continues for Duchess of Cambridge's second child
Hermann Goering's daughter fails to reclaim items looted by Nazi deputy during WWII
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£22000 - £40000 per annum: Recruitment Genius: This company is part of a Group...
£16000 - £18000 per annum: Recruitment Genius: Are you a a young, dynamic pers...
Voluntary: Cancer Research UK: We’re looking for someone to support our award ...